Which of the Following Budgets Would Probably Not Be Prepared

question 45

Multiple Choice

Which of the following budgets would probably not be prepared using information provided by the production budget?

• A) Direct materials budget
• B) Direct labor budget
• C) Manufacturing overhead budget
• D) Sales budget

---

Definitions:

Income Statement

A financial statement showing a company's revenues, expenses, and profit or loss over a specific period.

Cost of Goods Sold

Expenses directly incurred from the creation of a company's sold goods, involving labor and materials.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, culminating in net income or loss for the period.

Sales

The transactions involved in selling goods or services to customers, generating revenue for a business.